Kyocera Corporation (NYSE:KYO)(TOKYO:6971) today announced that it has concluded a basic agreement as of September 29 to acquire the majority of shares of a company to be established from the company split of Ryobi Limited’s (President: Akira Urakami) power tool business. The acquisition is expected to be completed in January 2018. Through the acquisition, Kyocera aims to promote diversification and further expansion of its cutting tool business.
Acquisition Background and Objectives
Kyocera has continually been expanding sales in its cutting tool business on a global basis as one of the leading companies in the field after having entered the market more than 40 years ago. Kyocera has been focusing its efforts on diversifying and expanding sales of products from its core of indexable tools to solid carbide tools, woodworking tools, as well as power tools for the construction industry. In particular, Kyocera has recently strengthened its power tool business in the U.S. and European markets through targeted acquisitions such as the acquisition of the Unimerco Group in Europe (now KYOCERA UNIMERCO A/S) in 2011 and the acquisition of SENCO Holdings, Inc. in August of this year (now KYOCERA SENCO Industrial Tools, Inc.)
By acquiring the power tool business from Ryobi, which has a strong market position in Japan and Asia encompassing a wide range of products with highly advanced technologies, Kyocera aims to take advantage of synergies with its relevant group companies in order to expand sales globally.
Outline of Agreement
|Target business||Manufacturing and sales operations of the power tool business owned by Ryobi|
|Expected date of acquisition||January 2018|
|Outline of share acquisition||Kyocera to acquire 80% of shares in a company to be established by incorporation-type company split that will assume Ryobi’s power tool business. Details of the company to be established have not yet been determined.|
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Kyocera Corporation (NYSE:KYO/TOKYO:6971; http://global.kyocera.com/), the parent and global headquarters of the Kyocera Group, was founded in 1959 as a producer of fine ceramics (also known as “advanced ceramics”). By combining these engineered materials with metals and integrating them with other technologies, Kyocera has become a leading supplier of cutting tools, electronic devices, semiconductor packages, printers, copiers, mobile phones, solar power generating systems and industrial components. During the year ended March 31, 2017, the company’s consolidated net sales totaled 1.42 trillion yen (approx. USD12.7 billion). Kyocera appears on the “Top 100 Global Innovators” list by Clarivate Analytics and is ranked #522 on Forbes magazine’s 2017 “Global 2000” list of the world’s largest publicly traded companies.